Silver prices surged by ₹5,000 to hit a new record high of ₹2.56 lakh per kilogram in the national capital on Wednesday, driven by escalating US-Venezuela tensions and robust industrial demand. The All India Sarafa Association reported this latest milestone as safe-haven buying intensified across precious metals markets.

The white metal's exceptional rally continues to captivate traders, with geopolitical tensions providing additional momentum to an already bullish trend supported by supply constraints and strong industrial usage.

Silver's Record-Breaking Performance

Silver demonstrated remarkable strength with a substantial single-day gain, reflecting heightened investor interest in safe-haven assets.

Traders attributed the surge to escalating tensions between the US and Venezuela, which boosted safe-haven appeal. Supply-side constraints and strong industrial usage further amplified silver prices, with sustained buying by investors and China's export curbs on silver that came into effect from January 1 adding to the momentum.

Gold Experiences Marginal Decline

In contrast to silver's stellar performance, gold of 99.9% purity slipped marginally by ₹100 to ₹1,41,400 per 10 grams (inclusive of all taxes), compared to the previous close of ₹1,41,500 per 10 grams.

Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, explained that gold prices experienced a slight decline as investors took profits following a recent rally. A recovery in the US dollar also weighed on gold prices, though persistent geopolitical risks continue to support safe-haven demand for precious metals, limiting sharp downside.

International Market Dynamics

Global precious metals markets showed mixed signals with silver posting gains during intraday trading despite closing lower in international markets.

During the international trading session, silver climbed by $1.45, or 1.80%, to hit an intraday high of $82.75 per ounce, demonstrating the metal's volatile but bullish trajectory.

Expert Outlook and Price Targets

Renisha Chainani, Head - Research at Augmont, provided insights into silver's future trajectory. "We could see some profit booking from here, but when it breaks the previous top again, the next level to watch for is $84 (₹2,66,000 per kg) and $88.50 (₹2,80,000 per kg)," Chainani stated.

Market experts continue to highlight the structural factors supporting silver's performance, including supply deficits, industrial demand from solar and electronics sectors, and geopolitical uncertainties driving safe-haven flows into precious metals.

Gold has reinforced its reputation as a reliable safe haven asset, delivering extraordinary returns to investors over the past five years. The precious metal's remarkable performance has turned modest investments into substantial wealth, with prices surging over 250% between 2020 and 2025.

Exceptional Five-Year Performance

The numbers tell a compelling story of gold's appreciation. An investor purchasing 10 grams of gold at the beginning of 2020 would have paid ₹38,995, while the same quantity commanded ₹1,36,649 as of December 29, 2025, according to Bloomberg data.

This 250.4% appreciation over five years demonstrates gold's ability to multiply wealth significantly. An investor who allocated ₹1 lakh to gold in January 2020 would have acquired approximately 25.64 grams of the precious metal, now worth a substantial ₹3.5 lakh.

Decade-Long Growth Trajectory

Gold's impressive performance extends beyond the recent five-year period. Over the last decade, the yellow metal has surged nearly 431%, delivering returns more than five times its worth from 2015 levels. This consistent growth pattern has strengthened investor confidence in the commodity and validated its traditional role as a portfolio diversifier.

Market Outlook

Analysts maintain a constructive outlook for gold's prospects, citing several supportive factors. According to analysts at Amit Kedia Advisories, gold's structural drivers remain robust, including:

• Ongoing geopolitical risks
• Continued central bank accumulation
• Sustained ETF demand
• Strong long-term fundamental backdrop

However, analysts caution against momentum chasing, noting that some catalysts may gradually mature, potentially leading to intermittent corrections. A deeper correction of 15-20% remains possible if risk sentiment improves significantly or ETF flows reverse direction.

Investment Strategy Recommendations

For investors seeking gold exposure, experts recommend maintaining disciplined investment approaches. Key strategies include:

• Continuing exposure through gold ETFs
• Adopting systematic investment plans (SIP) to manage volatility
• Maintaining long-term perspective despite short-term fluctuations

Gold's performance over the past five years underscores its enduring appeal as both a wealth preservation tool and growth asset, particularly during periods of market uncertainty and economic volatility.

Analysts project further 10-12% upside with prices potentially reaching ₹1,50,000 per 10 grams, reinforcing the metal's continued attractiveness as an investment option.